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You can achieve Negative Churn, which means you are adding MRR at a faster pace than you are losing it.

InsightSquared

More SaaS + Software Stats

Our experiences with SaaS startups indicate that they usually start with a couple of lead generation programs such as Pay Per Click Google Ad-words, radio ads, etc

SaaS organizations are now operating in over 100 countries

Three uses for the SaaS Guidelines

56% treat “Existing Customer Renewals” as high priority

The fastest growing SAAS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn

Unlike many other industries, if a software company grows at only 20%, it has a 92% chance of ceasing to exist within a few years

Net-revenue churn improves with larger Average Contract Value (ACV), likely due to more structural churn among SMB customers and higher switching costs associated with larger contracts

Achieving a SaaS Quick Ratio of 4 is a good benchmark for young, high-growth companies but the equation changes as those companies reach scale

Median annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013

73% of organizations indicated nearly all their apps will be SaaS by 2021

More Growth Strategy Stats

It’s 4x cheaper to upsell existing customers than acquire new customers: costing just $0.28 to acquire an additional dollar of revenue

Our experiences with SaaS startups indicate that they usually start with a couple of lead generation programs such as Pay Per Click Google Ad-words, radio ads, etc

The average company booking professional services revenue on new deals is equivalent to 16% of the first year subscription value. Professional services margins are approximately 22%

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; this will become a major drag on growth

Growing faster has twice as much impact on share price as improving margins

Google only has a 30 percent female workforce

Women in western countries use the internet 17 percent more than their male counterparts

The median average contract length is 1.3 years and the average billing term is seven months in advance in 2016. Comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing by one month from 2015 to 7 months

Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less

If the numerator of your quick ratio is growing that means your revenue is growing. It’s important to keep increasing revenue to counter any MRR (Monthly Recurring Revenue) that is lost to churn